Question
Jyoti  Ltd incurred loss in the current financial
year  first half of FY2 6 ; however, it wants to declare interim  dividend. What is the maximum rate of dividend it can  declare if the dividend declared by Jyoti  Ltd in the last 5 years was as follows?  FY2 5  – 20%  FY2 4  – 19%  FY2 3  – 18%  FY2 2  – 18%  FY 21  – 23%Solution
In case the company has incurred loss during the current financial year up to the end of the quarter immediately preceding the date of declaration of interim dividend, interim dividend shall not be declared at a rate higher than the average dividends declared by the company during immediately preceding 3 financial years.
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